Smart meters are advanced electronic devices that record energy consumption in real time and transmit the data to utility companies for more efficient monitoring and billing. These meters enable consumers to better manage their energy usage while helping utilities optimize their grid operations.
The smart meter sector in India is rapidly evolving, with companies such as GMR Smart Electricity Distributions Pvt. Ltd., Landis+Gyr, Siemens, Genus Power, L&T, and Schneider Electric playing a pivotal role in the market. These companies are partnering with state-run utilities to roll out large-scale smart meter installations, addressing the increasing demand for energy efficiency and reliable data management.
Future Growth Prospects
The future of the smart meter industry looks promising, driven by the government’s push for digitalization and smart grid infrastructure. With an emphasis on energy conservation and sustainability, the sector is poised for significant growth. The rise of renewable energy, along with advancements in IoT and data analytics, is expected to further fuel demand for smart meters, offering immense potential for both domestic and international players. As the country aims to modernize its energy systems, the smart meter market is projected to see substantial investments and expansion in the coming years.
Share Price
The share of GMR Power and Urban Infrastructure are currently trading at Rs. 127 down by 0.97% from its previous close of Rs. 128.86 as of January 8, 2025. The shares also touched an intraday high of Rs. 133.
Recent Updates
Project Overview and Scope
GMR Smart Electricity Distributions Private Limited (GSEDPL), a subsidiary of GMR Power and Urban Infra Limited (GPUIL), has been awarded the responsibility to install, integrate, and maintain 75.69 lakh smart meters across U.P. The project covers two zones of Purvanchal Vidyut Vitran Nigam Limited (PuVNL) and two zones of Dakshinanchal Vidyut Vitran Nigam Limited (Agra and Aligarh zones). GSEDPL, in collaboration with Bosch Global Software Technologies, is implementing the project through three Special Purpose Vehicles (SPVs).
Funding and Loan Sanction
The total project cost is estimated at ₹3467.02 crore, which will be funded through a mix of debt, equity, and internal accruals. To part-finance the project, the three SPVs—GMR Agra Smart Meters Limited, GMR Kashi Smart Meters Limited, and GMR Triveni Smart Meters Limited—have received an aggregate project loan sanction of ₹2128 crore from the Indian Renewable Energy Development Agency (IREDA), to be disbursed in tranches.
Corporate Guarantee and Securing Obligations
In order to secure the financial obligations of the project SPVs, the company has extended a corporate guarantee of ₹440 crore for each SPV in favor of IREDA. This guarantee will remain in place until the Commercial Operation Date (COD), ensuring the financial stability and commitment to the successful completion of the project.
Financial Outlook
GMR Power & Urban Infra Ltd. showed strong financial performance in September 2024, with a significant increase in sales to ₹1,384 crore from ₹627 crore in September 2023, reflecting a growth of 120%.
EBITDA also surged to ₹411 crore from ₹108 crore, improving the Operating Profit Margin (OPM) from 17% to 30%. Notably, the company turned around its net profit, reporting ₹250 crore in September 2024 compared to a loss of ₹123 crore in the same period last year. This highlights GMR Power & Urban Infra’s robust financial recovery and positive outlook.
About the Company
GMR Power & Urban Infra Ltd. is a diversified infrastructure company engaged in the development and operation of energy and urban infrastructure projects. As a part of the GMR Group, the company focuses on providing innovative solutions across power generation, distribution, urban development, and smart city initiatives. It is involved in large-scale projects that include power plants, smart meters, and urban infrastructure developments.
GMR Power & Urban Infra Ltd. aims to enhance its market presence through strategic investments and partnerships. The company is committed to sustainability, energy efficiency, and contributing to the modernization of India’s infrastructure landscape.
Written By: Dipangshu Kundu
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